A recent global report from Santander indicates that teaching children about financial education is deemed more crucial than subjects like history or science. The study reveals that respondents rank financial education as the second most important school subject, following mathematics. This finding emerges shortly after the UK government announced that financial literacy will become a mandatory component of the national curriculum for all primary and secondary schools by 2028.
The survey, which gathered insights from individuals across ten countries, assessed attitudes, beliefs, and knowledge regarding financial education. In the UK, approximately 71% of participants consider themselves fairly or very knowledgeable about financial matters, compared to 61% globally. Notably, nearly half of the respondents in the UK expressed a desire for more education on pensions, while around 66% wished to enhance their understanding of investing.
Despite this perceived knowledge, the survey highlights a cautious approach to investment among the British population. Less than a third, specifically 31%, indicated a willingness to invest in stocks and shares, with a significant 55% preferring to avoid such options altogether.
The overhaul of the curriculum, as announced by the Department for Education, aims to equip young people with essential financial skills. Treasury Minister Lucy Rigby underscored the importance of this initiative, stating, “At present, too many children leave school without a basic financial education, including the skills they will need to manage money.” Rigby emphasized the government’s commitment to implementing compulsory financial education within primary schools as part of a broader strategy to strengthen citizenship education.
In addition, Rigby noted the government’s plan to provide ongoing support and information to individuals throughout their lives, aiming to enhance their financial decision-making. This includes tailored assistance that enables businesses to engage directly with consumers about suitable financial products.
Echoing the report’s findings, Mike Regnier, CEO of Santander UK, emphasized that mandatory financial education will foster a deeper understanding of financial and economic concepts, ultimately benefiting the economy. He stated, “Mandatory financial education, which we have been calling for, will help establish a stronger knowledge of financial and economic concepts, benefiting not only individuals but the UK economy at large.”
The comprehensive survey spanned various nations, including the United States, Brazil, Argentina, Spain, Chile, Portugal, Mexico, and Poland. The findings and insights are detailed in Santander’s report, titled “The Currency of Learning: Global Perspectives on Financial Education.”
This significant focus on financial literacy reflects a growing recognition of the need for educational systems to prepare students for real-world financial challenges. As the curriculum evolves to include essential financial education, the hope is that future generations will be better equipped to navigate their financial futures.
